Federal tax due increased after turbo tax update today.

[tegethom]

Just updated turbo tax today.  My taxes had been completed but not filed. My federal tax due increased over 10k.  It looks like I am being charged an RMD withdraw penalty now.   I did withdraw my full required RMD amount on time.

[SteamTrain]

You might need to edit each 1099-R, and answer all the follow-up questions about the RMD amounts again.

They added a bunch of new questions that are supposed to clarify the situation for a ton of folks where it mis-reports the RMD amounts.   Do it even if yours was OK before the update.

Once you go thru each 1099-R, then "Continue" thru the interview to work back to the main menu...there's at least one more new question that asks if you took all the required RMDs for the year.

[tegethom]

Thanks!  I will do what you suggest tomorrow & then post an update.

[tegethom · Accepted solution]

I went back and edited the 1099 entries.  I had taken two RMD withdraws from the same account a month apart.

The two withdraws equaled the total required RMD amount for 2024.  Going thru the follow up questions after entering the financial info, a new question appeared, "A corrective distribution of the shortfall amount was made within the window".  Providing a "YES" response to this question corrected my problem.

Interesting fact: When I was initially trying different things to fix my issue, when I included my two RMD

withdraws as single entry,  totaled both federal & state from both withdraws, my federal tax due changed to me getting a refund.   In the test the total RMD value was the same in both situations.

Wonder why the results were different.......